• Attorneys have been developing budgets for clients for decades
• Developed for corporation with budget constraints individual with limited resources (or) responses to RFP
• Typically based on high-level phases of the engagement with lump sum figures

2. Most attorneys approach to budgeting:

• Are not trained to budget their matters
• No business analysts dedicated to budget analysis
• Plan based upon intuition without historical information
• No access to historical data and comparisons
• Invest a considerable amount of time mapping out the case and estimating cost

• Client and the Firm collaborate on a budget prior to the engagement
• Achieve Client satisfaction by addressing changes prior to action
• Use as a tool for both the Client and the Firm to gauge management of the matter

2. BakerManage Phase Overview

C. Budgeting Process

The Budgeting Process consists of five steps:

Confirm Scope

Identify the Framework

Elaborate Tasks into Subtasks

Estimate Resources, Rate and Time

Clarify Assumptions and Risks

Confirm Scope

Historically, scope was captured:

by engagement letters outlining

the duties of the firm, lawyer and client

general statement of what the attorney will do for the client

the nature of the matter (usually in one sentence)

the expected adverse parties

how fees and expenses will be charged

Is this enough for budget development?

If detail not provided:

estimates will be based upon the most recent experiences of the Client or lawyers

will not accommodate the unique aspects of the matter

will result in inaccuracies as tasks or activities may be missed in planning

“the agreement by a person to a proposed course of conduct after the lawyer has communicated adequate information and explanation about the material risks of and reasonably available alternatives to the proposed course of conduct.”

About the Author David A. Rueff, Jr. is a practicing attorney with 18 years of experience in transactional and litigation practices. He is certified as a Project Management Professional (PMP) and in the Toyota Production System (Lean). David serves as Baker, Donelson, Bearman, Caldwell & Berkowitz, PC’s Legal Project Management Officer, where he works to implement the firm’s legal process excellence initiatives. Contact David at drueff@bakerdonelson.com.